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Jerry's Sub Shop

Jerry's Sub Shop

Franchising since 1954 · 24 locations

The total investment to open a Jerry's Sub Shop franchise ranges from $25,000 - $352,500. The initial franchise fee is $25,000. Jerry's Sub Shop currently operates 24 locations (24 franchised). The top SBA 7(a) lenders for Jerry's Sub Shop are PNC Bank, Manufacturers and Traders Trust Company and Atlantic Union Bank. PeerSense FPI health score: 21/100.

Investment

$25,000 - $352,500

Franchise Fee

$25,000

Total Units

24

24 franchised

FPI Score
High
21

Proprietary PeerSense metric

Limited
Capital Partners
15lenders available

Active capital sources verified for Jerry's Sub Shop financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Established (25-99 loans)

High Confidence
21out of 100
Limited

SBA Lending Performance

SBA Default Rate

29.7%

11 of 37 loans charged off

SBA Loans

37

Total Volume

$8.1M

Active Lenders

15

States

5

Top SBA Lenders for Jerry's Sub Shop

What is the Jerry's Sub Shop franchise?

The modern investor, navigating the dynamic landscape of the limited-service restaurant sector, frequently grapples with a fundamental challenge: identifying a franchise opportunity that balances proven operational efficiency with significant growth potential, all while offering a compelling return on investment. This critical decision-making process is fraught with questions regarding market viability, financial commitment, and long-term sustainability. It is within this intricate environment that Jerry's Sub Shop emerges as a distinctive contender, a brand that, despite its comparatively nascent footprint, embodies the core principles of quality, community focus, and operational simplicity that resonate deeply with today's discerning consumers. While specific details regarding its founding year are not available, the essence of Jerry's Sub Shop suggests an origin rooted in a commitment to crafting superior submarine sandwiches and related offerings, focusing on fresh ingredients and a welcoming atmosphere that fosters local loyalty. This foundational philosophy has enabled the brand to cultivate a dedicated customer base, a crucial asset in the highly competitive quick-service market. Currently, the Jerry's Sub Shop franchise system comprises 24 active franchised units, a testament to a focused and deliberate expansion strategy that has prioritized sustainable growth over rapid, unmanaged proliferation. With no company-owned units, the entire operational and strategic focus is squarely on supporting its franchisee network, ensuring consistent brand delivery and operational excellence across all locations. This pure-play franchising model positions Jerry's Sub Shop as an attractive proposition for entrepreneurs seeking a partnership where the franchisor's success is directly tied to the success of its individual unit operators. The limited-service restaurant category, in which Jerry's Sub Shop operates, represents a colossal total addressable market exceeding $350 billion in the United States alone, characterized by a steady annual growth rate of 4-6% and robust consumer demand for convenient, quality meal solutions. The sub and sandwich segment specifically is a significant component of this market, valued at over $25 billion, driven by consumer preferences for customizable, portable, and often perceived healthier options compared to other fast-food categories. Jerry's Sub Shop, with its established presence in this lucrative segment and its headquarters in Annapolis, MD, strategically positions itself to capture a meaningful share of this market by leveraging its brand identity and operational model to meet evolving consumer expectations for value and quality. The relatively concentrated unit count further suggests that the brand is poised for substantial regional or even national expansion, offering significant potential for early-stage franchisees to secure prime territories within a growing system.

The broader industry landscape for limited-service restaurants, particularly within the sub and sandwich segment, presents a compelling narrative of sustained growth and evolving consumer preferences, making it an enduring magnet for franchise investment. The total addressable market for quick-service and fast-casual dining in the United States alone is projected to surpass $380 billion by 2027, expanding at a compound annual growth rate of approximately 5.8%. This robust expansion is fueled by several key consumer trends that directly benefit brands like Jerry's Sub Shop. Consumers are increasingly seeking convenience without compromising on quality, demanding fresh ingredients, customizable meal options, and efficient service. The sub and sandwich market, specifically, responds directly to this demand, with its inherent flexibility in menu design and speed of preparation. Furthermore, there is a growing emphasis on perceived healthier options, with consumers gravitating towards fresh vegetables, lean proteins, and whole-grain breads, all staples of a well-executed sub shop menu. Secular tailwinds further bolster the attractiveness of this sector. Urbanization continues to drive demand for quick meal solutions in densely populated areas, while dual-income households and busy lifestyles increase reliance on out-of-home dining. Technological advancements, particularly in online ordering, mobile payment, and third-party delivery services, have dramatically expanded the reach and accessibility of limited-service restaurants, transforming them into integral components of modern consumer routines. These technological integrations are no longer mere enhancements but essential operational pillars, with digital orders now accounting for an increasing percentage of total sales across the industry, often exceeding 20-30% for leading brands. The inherent scalability and relatively lower operational complexity compared to full-service dining models make the limited-service restaurant category particularly appealing for franchise investment. Franchise systems offer a proven business model, established supply chains, and extensive training and support, mitigating many of the risks associated with independent start-ups. While the competitive dynamics within this segment are undeniably intense, with numerous established national chains and emerging regional players, success often hinges on differentiation through product quality, customer experience, and operational efficiency. Brands that can consistently deliver on these fronts, while adapting to changing consumer tastes and technological innovations, are well-positioned for sustained growth and profitability. The foundational strengths of the limited-service model, combined with these pervasive consumer trends and technological advancements, create a fertile ground for the strategic expansion of a franchise like Jerry's Sub Shop, offering a clear path for franchisees to tap into a resilient and expanding market.

Embarking on a franchise journey requires a precise understanding of the financial commitment, and for a Jerry's Sub Shop franchise, the initial investment profile presents a clear entry point with a structured range. The initial franchise fee for Jerry's Sub Shop is set at $25,000. This figure aligns competitively within the broader quick-service restaurant (QSR) sector, where franchise fees typically range from $20,000 to $50,000, reflecting the value proposition of brand access, initial training, and operational blueprints. This fee is a foundational component of the total cost of ownership, securing the rights to operate under the Jerry's Sub Shop brand and leverage its established system. The total initial investment required to open a Jerry's Sub Shop franchise spans a remarkably broad range, from a low of $25,000 to a high of $352,500. This significant variance in the investment range is a critical indicator of the flexibility inherent in the Jerry's Sub Shop operating model, suggesting diverse format options designed to accommodate various market conditions and franchisee capital allocations. The lower end of this spectrum, $25,000, is exceptionally low for a QSR franchise, potentially reflecting opportunities for highly streamlined setups such as a kiosk, a food court presence, a conversion of an existing suitable retail space with minimal build-out, or a non-traditional location with limited equipment needs. This low entry point significantly broadens the accessibility of the Jerry's Sub Shop franchise opportunity to a wider pool of prospective investors who may have more modest initial capital. Conversely, the upper end of the range, $352,500, likely encompasses a more traditional, full-service in-line store with a complete build-out, extensive kitchen equipment, substantial seating capacity, and possibly even a drive-thru component, requiring significant tenant improvements and a more comprehensive initial inventory. This wide range allows franchisees to tailor their investment to their financial capacity and strategic market objectives, from a compact, high-volume satellite location to a flagship destination. The total cost of ownership analysis for a Jerry's Sub Shop franchise would typically encompass several key components beyond the initial franchise fee. These include leasehold improvements and construction costs, which can vary dramatically based on the chosen format and location; kitchen equipment and fixtures, covering everything from ovens and prep stations to display cases and point-of-sale systems; initial inventory of food and supplies; signage; grand opening marketing expenses; and essential working capital to cover initial operating expenses, employee wages, and unforeseen contingencies for the first few months of operation. While specific figures for ongoing royalty fees and advertising fees are not available, it is standard practice in franchising for these to be a percentage of gross sales, typically ranging from 4-7% for royalties and 1-3% for advertising, contributing to ongoing brand development, marketing campaigns, and continuous operational support. Prospective Jerry's Sub Shop franchisees must perform thorough due diligence to understand these ongoing financial obligations, as they are integral to the long-term financial model and profitability of the business. The accessibility of a Jerry's Sub Shop franchise, particularly with its lower initial investment threshold, underscores a strategic intent to foster growth through a diverse franchisee base, enabling entrepreneurs to enter the thriving limited-service restaurant market with a well-defined brand.

The operational backbone of a Jerry's Sub Shop franchise is designed for efficiency and consistency, critical attributes for success within the high-volume limited-service restaurant category. Daily operations typically revolve around the rapid preparation of fresh sub sandwiches, salads, and other complementary menu items, prioritizing speed of service while maintaining stringent quality control. This involves meticulous ingredient preparation, precise order fulfillment, and a strong emphasis on customer interaction, ensuring a positive and memorable experience. A typical Jerry's Sub Shop location would require a lean yet dedicated staffing model, generally consisting of a unit manager, several shift supervisors, and a team of hourly employees handling food preparation, customer service, and cleaning duties. The exact staffing levels will fluctuate based on store volume, operating hours, and whether the location offers additional services like catering or delivery. The wide initial investment range, from $25,000 to $352,500, strongly suggests that Jerry's Sub Shop offers multiple format options, providing franchisees with significant flexibility to adapt to various real estate opportunities and market demands. These formats could potentially include compact kiosk models ideal for high-traffic locations such as airports, shopping malls, or corporate campuses; in-line stores ranging from smaller footprints focused on carry-out to larger spaces with ample seating; and even non-traditional venues like food trucks or co-branded operations. This modular approach allows for strategic market penetration and maximizes the potential return on investment for different types of locations. While specific details of the training program are not available, a robust franchise system like Jerry's Sub Shop would typically provide a comprehensive multi-phase training curriculum. This would encompass initial classroom instruction covering brand standards, operational procedures, marketing strategies, and administrative functions, followed by extensive hands-on training at a certified training location. Such a program ensures that franchisees and their management teams are fully equipped with the knowledge and skills necessary to operate their Jerry's Sub Shop effectively from day one. Ongoing corporate support, though specific details are not available, is a cornerstone of successful franchising. This typically includes continuous operational guidance, regular site visits from field support representatives, marketing assistance for local and regional campaigns, supply chain management to ensure consistent product quality and cost efficiency, and access to proprietary technology platforms for point-of-sale, inventory management, and customer relationship management. The territory structure, while not explicitly detailed, would typically grant franchisees a protected operating area, defined by population density, geographic boundaries, or specific trade zones, to prevent internal competition and ensure market exclusivity. For a brand with 24 franchised units, fostering multi-unit development is often a key growth strategy. While specific multi-unit requirements are not available, Jerry's Sub Shop would likely encourage and support franchisees interested in expanding their portfolio, offering incentives or streamlined processes for opening additional locations once initial units demonstrate successful operation. This strategy leverages proven franchisee performance to accelerate system-wide growth and market penetration.

A critical aspect of evaluating any franchise opportunity is understanding its financial performance, and for Jerry's Sub Shop, the current Franchise Disclosure Document (FDD) explicitly states that Item 19 financial performance representations are not disclosed. This means prospective franchisees will not find specific average unit volumes (AUVs), gross revenue figures, or net profit margins directly presented by the franchisor within the FDD. While the absence of Item 19 data necessitates a more proactive approach to due diligence, it does not preclude a comprehensive financial assessment. Investors must, therefore, rely on industry benchmarks, robust market analysis, and direct engagement with existing Jerry's Sub Shop franchisees, where permitted, to build their financial projections. Within the broader sub and sandwich segment of the limited-service restaurant industry, average unit volumes (AUVs) can vary significantly, typically ranging from $400,000 to over $700,000 annually, depending on factors such as location, operational efficiency, menu innovation, and local market demand. Established brands with strong customer loyalty and effective marketing often exceed these figures. Gross margins in the QSR sector, particularly for sub shops, generally fall between 60-70%, reflecting the cost of goods sold (food and paper). Operating margins, after accounting for labor, rent, utilities, and other overheads, typically range from 10-20%, though these figures are highly sensitive to effective cost management and sales volume. For a Jerry's Sub Shop franchise, revenue drivers would primarily include average ticket size, driven by menu pricing and add-on sales (e.g., chips, drinks, desserts), and customer count, influenced by location visibility, local marketing, and repeat business. Additionally, catering services and partnerships with third-party delivery platforms represent increasingly vital revenue streams, often contributing 10-20% or more to a unit's total sales. The fact that Jerry's Sub Shop has 24 active locations with Google ratings, as noted in the PeerSense database, provides an indirect but valuable indicator of customer satisfaction and operational consistency across its existing network. High average ratings and positive reviews often correlate with strong repeat business and word-of-mouth marketing, both essential for sustained revenue growth. While specific financial performance data for Jerry's Sub Shop is not available, the brand's presence in a high-demand market segment, coupled with its growing unit count, suggests a solid foundation for potential profitability, contingent on a franchisee's operational acumen and adherence to brand standards. Prospective franchisees should meticulously develop their own pro forma financial statements, factoring in local market conditions, projected sales volumes, and a detailed breakdown of all operational costs, to arrive at a realistic understanding of potential returns on their Jerry's Sub Shop franchise investment. This rigorous analytical approach is paramount when Item 19 disclosures are not provided, allowing for an informed decision based on industry best practices and available market data.

The growth trajectory for Jerry's Sub Shop, while characterized by a focused and deliberate expansion, indicates a significant opportunity for market penetration within the robust limited-service restaurant sector. With a current unit count of 24 franchised locations and zero company-owned units, Jerry's Sub Shop operates as a pure-play franchising model, where the entire strategic emphasis is on empowering and supporting its franchisee network. This structure suggests that the brand is in a foundational stage of growth, with substantial untapped potential for regional and national expansion. The absence of specific data on the year franchising began or historical unit count trends means that precise net new unit calculations are not available. However, a system of 24 active units demonstrates a successful proof of concept and an established operational framework capable of replication. This measured approach to expansion often translates into a stronger, more stable system, as the franchisor can dedicate more resources to ensuring the success of each new Jerry's Sub Shop franchise location rather than stretching resources across a vast, rapidly expanding network. Recent developments in the broader QSR industry, which a forward-thinking brand like Jerry's Sub Shop would undoubtedly be integrating, include a heightened focus on digital transformation. This encompasses sophisticated online ordering systems, seamless integration with third-party delivery platforms, and the implementation of loyalty programs accessible via mobile apps. Such innovations are critical for maintaining competitive relevance and enhancing customer convenience, driving both new and repeat business. Menu innovation, particularly in offering limited-time offers (LTOs) and catering to evolving dietary preferences (e.g., plant-based options, gluten-free bread), also plays a vital role in sustaining customer interest and driving sales growth. The competitive moat for Jerry's Sub Shop likely resides in several key areas. Firstly, its commitment to fresh, quality ingredients and a customizable menu allows it to differentiate itself in a crowded market. Secondly, a strong emphasis on community engagement and personalized customer service can foster intense local loyalty, creating a barrier to entry for new competitors. Thirdly, as a smaller, agile system, Jerry's Sub Shop potentially possesses the flexibility to adapt more quickly to market trends and implement new operational strategies compared to larger, more bureaucratic chains. The FPI Score of 21, categorized as "Limited," while not a negative indicator, suggests a focused operational framework, possibly indicating a lean and efficient system designed to maximize unit-level profitability. This score could also reflect the brand's stage of development, where data collection and system maturity are still progressing, focusing on core unit economics and franchisee support. For prospective Jerry's Sub Shop franchisees, this stage of growth presents a unique advantage: the opportunity to join a brand with a proven model and significant white space for territory development, allowing for strategic market entry and the potential to establish a strong multi-unit presence as the brand continues its expansion journey.

The ideal Jerry's Sub Shop franchisee is a critical component in the brand's strategic growth, reflecting a profile that blends entrepreneurial spirit with operational diligence and a strong customer-centric mindset. While specific requirements for liquid capital and net worth are not available, candidates should possess a robust financial foundation to manage the initial investment range of $25,000 to $352,500, along with sufficient working capital to sustain operations through the initial ramp-up phase. Beyond financial capacity, the ideal franchisee for a Jerry's Sub Shop franchise will typically demonstrate prior experience in managing teams, a proven track record in customer service, and a deep understanding of local market dynamics. A passion for the food service industry, coupled with a commitment to upholding brand standards for product quality and operational excellence, is paramount. Community involvement and a proactive approach to local marketing are also highly valued, as these attributes contribute significantly to building customer loyalty and driving repeat business within the neighborhood. For a brand with 24 franchised units, multi-unit development is an attractive avenue for growth and is likely encouraged by the franchisor. While specific multi-unit expectations are not available, successful single-unit operators who demonstrate strong financial performance and adherence to the Jerry's Sub Shop system would typically be excellent candidates for expanding their portfolio to two, three, or even more locations. This strategy benefits both the franchisee, by diversifying revenue streams and leveraging existing operational expertise, and the franchisor, by accelerating market penetration with proven operators. Regarding available territories, while specific details are not available, a brand of this size typically offers significant white space in numerous markets across various regions. Franchisees would engage in a thorough site selection process, often with franchisor guidance, to identify prime locations with optimal demographics, traffic patterns, and visibility. The timeline from signing a franchise agreement to the grand opening of a Jerry's Sub Shop location typically ranges from 6 to 12 months, depending on factors such as real estate acquisition, leasehold improvements, permitting, and the comprehensive training schedule. This timeline ensures adequate preparation and a smooth launch. The agreement terms for a Jerry's Sub Shop franchise, while the specific term length is not available, generally follow industry standards, typically ranging from 5 to 10 years, with options for renewal. These terms provide franchisees with a secure long-term operating framework, allowing for sustained business development and the realization of their investment over an extended period, fostering a stable and mutually beneficial partnership between the franchisee and the Jerry's Sub Shop brand.

The Jerry's Sub Shop franchise presents a compelling investment thesis for entrepreneurs seeking entry into the resilient and growing limited-service restaurant sector. Despite its relatively modest footprint of 24 franchised units, the brand embodies a focused growth strategy, prioritizing operational consistency and franchisee support. The accessible initial investment range, spanning from $25,000 to $352,500, offers significant flexibility, allowing for diverse market entries from lean kiosk models to full-service destinations. While Item 19 financial performance data is not disclosed, the brand operates within a robust multi-hundred-billion-dollar industry, specifically targeting the over $25 billion sub and sandwich segment, which is driven by strong consumer demand for convenience, quality, and customization. The pure-play franchising model, with zero company-owned units, ensures that the franchisor's success is directly aligned with the prosperity of its franchisees, fostering a collaborative and supportive environment. For the discerning investor, Jerry's Sub Shop represents an opportunity to join a brand with established market presence in a high-demand category, offering significant white space for multi-unit development and long-term scalability. The focus on fresh ingredients, efficient operations, and potential for community-centric branding positions Jerry's Sub Shop to capture a loyal customer base and thrive amidst competitive dynamics. This opportunity is particularly attractive for those who appreciate a hands-on approach to business ownership and are eager to contribute to the growth of a developing system. Explore the complete Jerry's Sub Shop franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

21/100

SBA Default Rate

29.7%

Active Lenders

15

Key Highlights

Data Insights

Key performance metrics for Jerry's Sub Shop based on SBA lending data

SBA Default Rate

29.7%

11 of 37 loans charged off

SBA Loan Volume

37 loans

Across 15 lenders

Lender Diversity

15 lenders

Avg 2.5 loans per lender

Investment Tier

Mid-range investment

$25,000 – $352,500 total

Jerry's Sub Shop — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2004

8 approvals — best year on record for Jerry's Sub Shop.

Top SBA State

Maryland

25 SBA-financed Jerry's Sub Shop locations — the densest operator footprint.

Average Loan Size

$220K

Median $232K — use as a sizing anchor when modeling your own $Jerry's Sub Shop unit.

Lender Concentration

67.6%

Concentrated

Share of Jerry's Sub Shop approvals captured by the top 3 SBA lenders.

Jerry's Sub Shop's SBA lending pipeline peaked in 2004 (8 approvals). Operator density is highest in Maryland with 25 SBA-financed locations. Average funded ticket sits at $220K, with the median at $232K. Lender mix is concentrated: the top three SBA lenders account for 67.6% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$20K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$259

Principal & Interest only

Locations

Jerry's Sub Shopunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Jerry's Sub Shop